Healthy profit growth for Agra

Agra Ltd posted a profit of nearly N$92.1 million for the year ended 31 July 2023, about 22.8% higher than its previous financial year.The company, which has an over-the-counter (OTC) listing on the Namibian Stock Exchange (NSX), reported revenue of nearly N$2.5 billion for the 12 months under review, up 23% year-on-year (y/y).The growth can be attributed to Agra’s expansion in fuel distribution and an enhanced market presence, which can be directly linked to the fruitful outcomes of Agra’s consistent investments in infrastructure, the company said. These investments align well with Agra’s strategic goal of broadening its national reach, alongside innovations like Agra’s Digital Auctions platform which has opened up brand new international markets for Namibian producers, it added.Revenue, expensesAgra’s increased revenue had a positive impact on its gross profit, marking a 9.6% rise from N$433.9 million in 2021/22 to N$475.4 million in 2022/23. “When compared to the increase in turnover, it is evident that this increase was not attained at the expense of the producer,” Agra said.Operating expenses recorded a modest 3% increase, moving from N$329.8 million in 2021/22 to N$339.7 million in 2022/2023, which is below the Namibian inflation rate of 4.5%. “This can be attributed to our firm commitment to cost control, as well as a N$12.3 million employer fund contribution holiday that Agra capitalised on. This holiday came as a result of the substantial growth of the company’s initial additional safety fund, which reached an excessive level and could be trimmed.”Headline earningsHeadline earnings per share (HEPS), a profitability gauge, came in at 90.05c – an increase of 23.5% y/y.Agra declared a total dividend of 16c for it 2023 financial year, up 18.5% y/y.“In the past fiscal year, Agra’s share price increased by 26.4%, which distinctly highlights our consistent value as a reliable investment option for our shareholders. “Our financial standing and the skilful stewardship of our organisation have not only resulted in noteworthy returns on invested capital, but have also facilitated the distribution of dividends – a trend we have diligently maintained since 2017, thereby reiterating our commitment to delivering value to our investors,” the company said.Agra closed at N$3.12 per share on the NSX on Wednesday.Four decadesAgra said 43 years ago, it embarked on a journey that intertwined its destiny with Namibia’s agricultural landscape.“From those modest beginnings, Agra has blossomed into an integral cornerstone of our nation’s farming heritage. Through generations, Agra has been the consistent link with farming families, fostering lasting relationships and steadfast support. “Today, the name Agra, resonates as a symbol of unwavering commitment to agriculture in Namibia. Our enduring presence across rural Namibia and our substantial investments in local infrastructure have transformed Agra into more than just a business entity,” the company said.According to Agra, it has become a stable hub for those whose lives revolve around farming, offering not only a wide variety of products and services, but also opportunities for employment and skills development within the local communities it serves. “Namibian producers can take comfort in the assurance that Agra stands as a resolute advocate, tirelessly devoted to enhancing the agricultural sector.”Investments“We are excited to announce the imminent addition of the new Okahao Agra Retail branch and the Mariental GoAgra Convenience Store and Fuel Station to our retail family, both opening in October 2023,” Agra said. The company is also actively working on introducing three more 24-hour fuel offerings in the upcoming 2023/24 financial year.“Our financial success reflects the strong bond we share with our clients. It's not achieved at their expense but demonstrates their loyalty and our commitment to supplying high-quality products. “We take pride in our operational efficiency and cost management, ensuring we meet our clients' diverse needs promptly. Excellence is an ongoing journey, from nurturing relationships to enhancing infrastructure. “Our commitment extends to creating employment opportunities and fostering industry growth. We believe in the future of Namibia and its agriculture, and we're dedicated to making sustainable contributions to the nation's economic development,” Agra said.

Healthy profit growth for Agra

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Namibian Sun 2025-01-10

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Healthy profit growth for Agra

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Namibian Sun 2025-01-10

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